Staff recommends the City Council approve the bid award to Van Arsdale Construction, and the subsequently-negotiated Construction Agreement and Final Work List between the City of Billings and Van Arsdale Construction, for the rehabilitation of the single-family house located at 1709 Saint Johns Avenue.

The City purchased this HUD-foreclosed property in November 2023 as part of the City's Foreclosure Acquisition / Rehabilitation Program. Under this program, Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) are used to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within our community. This property features a one-story, 1,000 square foot ranch-style single-family house, with a full basement, on a 6,072 square foot lot. Following a series of professional inspections, an Invitation for Bids (IFB) was developed and advertised. One bid was received from Wyman Construction for $258,403.31. The City rejected all bids on February 21, 2024. Staff prepared and advertised a REVISED IFB. Base bids were publicly opened April 16, 2024, with the following results:

• Van Arsdale Construction:  $186,883
• Wyman Construction:  $219,527

A Bid Review Committee consisting of the City's Facilities Manager, Deputy Building Official, Building Plans Examiner, and a Community Development Program Coordinator reviewed all bids received and unanimously recommended the City Council approve the bid award to Van Arsdale Construction.

Because the rehabilitated home will be sold to an income-qualified First Time Home Buyer applicant after rehabilitation, all low-income community members are considered stakeholders in the completion of this affordable housing unit. In addition, neighbors living near the home have been dealing with this dilapidated, vacant structure for years, so they seem very happy the home is to be rehabilitated and occupied following the sale.

City Council may:

• Approve the bid award, Construction Agreement and Final Work List with Van Arsdale Construction; or,
• Not Approve the bid award to Van Arsdale Construction, reject all bids, and provide additional direction to staff.

The Foreclosure Acquisition / Rehabilitation Program utilizes pass-through CDBG funding from HUD. CDBG funding is available to allocate to this project.

City resources are not used for this program.

Property Sale Price: Following rehabilitation, the property sale price will be the lesser of 1) the post-rehab appraisal amount, 2) the acquisition and rehabilitation costs, or 3) HUD's current maximum purchase price limit for Billings.

Staff recommends the City Council approve the bid award to Van Arsdale Construction, and the subsequently negotiated Construction Agreement and Final Work List between the City of Billings and Van Arsdale Construction, for the rehabilitation of 1709 Saint Johns Avenue.